Credit Report Errors
Credit report errors can be frustrating and seem unfair. A credit report error can result in bad credit. For the consumer to have a credit report error removed a credit dispute must be initiated by the consumer. It is important to check your credit report occasionally in case a credit report error such as a billing error has occurred.
The credit report error is damaging to your rating and in many instances is reported by one of the three credit bureaus, Experian formerly TRW, Equifax or TransUnion, as a negative remark. If you feel something has been added to your report in error contact the creditor immediately. It is highly recommended you contact them by letter so that you can keep a copy of the letter as record for future referral during the credit dispute.
Most billing errors that consumers receive on their credit reports are the erroneous reporting of someone else's activity. This can result due to an error in the filing of a social security number by the creditor or the credit bureaus, names that are the same or similar and many times family members either the same name can show up on your credit report. You may have made your payments on time or paid off a debt and it is otherwise indicated on your credit report. For example you may have sent all your Visa payments promptly and they were received on time but a late payment is recorded on your credit report. This report of late payment will result in a negative scoring on your credit so it is important to address the matter as soon as you discover it.
You can obtain a free credit report from many agencies online and most of them are instant credit reports so if you have been turned down for credit and do not understand why, it could be because something is recorded that is negative and it is an error. If a loan has been paid off on time or a payment is listed as late that was not make copies of checks and receipts and include them with any other documents that you send to the creditors.
An error on your credit report is annoying and time consuming for the consumer. It is important you take care of contacting the creditor and it is wise to contact all of the credit bureaus once the dispute is resolved. If you received any letters or documents from the creditor make sure you enclose that along with your documents when you contact the credit bureaus. All the paperwork and time is a hassle but so is having bad credit or negative credit when you do not expect it or did not earn it.
The law is in the consumer's favor regarding matters of errors on a credit report. The most important step for a consumer to take is acting promptly in matters of the error. The Fair Credit Reporting Act is a law that protects consumers. The Fair Credit Reporting Act was initiated as a law in 1970. The Act protects the rights of credit active consumers. One of the ways it does this is by placing a limit on who may see a copy your credit report. Your credit report is private and can not be viewed by the public. This law is to protect your privacy and protect you from identify theft and other matters similar to that.
There are other consumer protection agencies out there that can assist you. Many of them can be found in your local yellow pages listed under consumer agencies. If you feel you need an attorney or would rather let them deal with the issue you may ant to keep in mind that you will be responsible for the expense of the attorney. There are many attorneys available who specialize in credit and credit counseling if that is the option you choose to resolve your credit dispute.
If you initiate a credit dispute regarding the credit error, either with a creditor or the credit bureaus, you will need to file an amendment with all three of the credit bureaus. The amendment is a statement that will explain to the credit bureaus what your side of the dispute is and why you feel it is an unfair or erroneous reporting on your credit statement. The amendment is also required to be included in your records each time the debt is reported. Unfortunately filing an amendment will not clear up your bad or negative credit rating. Nor does it guarantee that the debt will not be held against you. It is a notation for lenders or employers to look at when reviewing your credit report. The party or parties reviewing your credit report however can and probably will ask you about the credit dispute and you can explain. The lender or employer can then take the issue into consideration and use the information, if they choose, while making their decision.